LBIC pledges affordable mortgages for home seekers

The Lagos Building Investment Company (LBIC) has restated its commitment to provide seamless, and affordable mortgages for residents.

The Chairman, Board of Directors of the Company Plc, Mr. Hakeem Ogunniran, said this at the 15th Annual General Meeting of the LBIC in Lagos. He said the company has developed suitable framework to provide mortgage financing at competitive rates to Lagosians.

He observed that Nigeria has the highest interest rates in mortgage lending, which is between 20 to 27 per cent, adding that despite the potentials of the mortgage subsector, the industry remained underdeveloped.

On the bank’s performance, Ogunniran disclosed that it continued on a path of growth despite the challenging operating environment. He stated that in 2019, its gross earnings grew by 9 per cent to N604 million from N551 million in 2018.

Although, he said the bank recorded a loss of N18 million, there was a marked improvement in fund mobilisation.

“Customer deposits grew by 15 per cent and stood at N2.39 billion as of December 31, 2019. The bank continued to create mortgage loans in line with the underwriting standards of the NMRC. With respect to an asset, the non-performing loan ratio improved to 4.43 per cent from 27 per cent in December 2018”, he said.

Speaking on the future projection, he said the bank has been appointed as the sole primary mortgage bank for the state’s civil servants on the National Housing Fund(NHF).

According to him, to unlock value in its land bank within the regulatory limit, LBIC, he said had embarked on the development of low- cost housing estates in areas such as Ogba-Ijaiye, Amuwo-Odofin, Isolo under the Public-Private Partnership arrangement.

At the forum, the State’s Commissioner for Housing, Moruf Fatai, said the government is centred on urban renewal of estates and ensuring a better mortgage system.

The Managing Director, LBIC, Tobiloba Lawal, expressed optimism that more progress would be recorded in the bank compared to previous years.